Currency Risk

Are fortunes made and lost in FX and who trades on the FOREX market?

Profit potential is enormous in the spot currency market. Potential losses can be capped by STOP-LOSS orders automatically executed by computerized dealing systems the moment price levels pre-set by the client are reached in a currency's fluctuation.

Profits on the other hand can be left to run on and on. You can let the profits run and cut your losses short. Trading strategy, assisted by our consultants and traders on request, is entirely up to the client's free choice, being tailored to fit varying preferences of market participation, hedging, or risk tolerance level.

Unfortunately, too many people enter the forex market and expect to get rich quick. Forex trading is not gambling, it's a skill which can return good profits if you enter with the correct mindset and are prepared to learn the various tricks and techniques.

In any form of investment where the potential profit is high, then so too are the potential losses. Even the most skilled and experienced traders will lose money and should not be put off when you do. The important thing is to make more gains than losses, so start small and learn from your mistakes.

Always trade with a stop loss, particularly if you are using any form of automated trading software, this will protect you from huge losses if the market should suddenly turn against you.

Wall Street

Advantages Forex Trading Has Over Stock Investing

Wall Street has shown us that corporate companies do not necessarily tell their investors everything and can 'simulate' growth while nothing is there. Have more control about the aspects that affect the market, and although Forex is affected by so many possibles in the world - at least you know about them.

Another thing of course is the liquidity of the market. Nobody can deny that a market as large in transaction volumes is liquid.Its very over the counter nature has made it so and this is why the Forex trade is so popular with the casual home user.

This means that investment decisions can be translated into action and profits or the avoidance of a disaster within a much shorter time that traditional markets like stock investing. Administrative procedures can be a killer - a few hours could mean the difference in points, which means you can lose money while you wait for your broker to clear your investments to be sold.

How does FX trading differ from stocks on Wall Street?

FX trades are opened then closed typically within days, sometimes within hours or minutes. A margin of only 1% is required to initiate a Forex trade with our managed accounts as opposed to 50% margin required for trading stocks. $10,000 would enable you to buy or sell $1 million worth of any currency (including US dollar).

When you sell a foreign currency against the dollar, you are buying the dollar equivalently in hopes that the dollar would rise in value and you can then cash in and close your position for a handsome profit.